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Merck Deploys AI for ‘Self-Driving’ Supply Chain

Posted December 21, 2016

Under Logistics & Supply Chain Issues

(Kim S. Nash – Wall Street Journal)

Merck KGaA, in a multi-year project to improve demand forecasts, plans to deploy sensors and algorithms throughout its supply chains for pharmaceuticals and health-care products.

The goal is to create an autonomous supply operation where computers make more decisions about allocating materials and distributing products, said Alessandro de Luca, CIO of the company, which is based in Darmstadt, Germany, and also known as The Merck Group. It is not affiliated with Merck & Co. in Kenilworth, N.J. [...]

While The Merck Group’s AI system doesn’t forecast revenues, specifically, more accurate data about product performance will lead to better and faster planning decisions, said Mr. de Luca, who joined the company in 2011 after more than 13 years in logistics and innovation at Procter & Gamble Co. He began AI tests at The Merck Company shortly after he arrived. Click here to read more.